Higher Education

Louisiana Senate Finance Committee FY 19 Executive Budget 19A – Higher Education May 2018 Sen. John A. Alario, President Sen. Eric LaFleur, Chairman FY 19 Executive Budget Schedule 19 — Higher Education Pursuant to Act 314 of 2016, LOSFA and LUMCON are no longer individual budget units and are now programs within the Board of Regents (BoR). Other significant BoR funding initiatives included within the Board of Regents budget unit include: Louisiana Optical Network Infrastructure (LONI) and the Louisiana Library Network (LOUIS). Louisiana Universities Marine Consortium • Louisiana State University • Southern University Board of • University of LA Board of • LCTCS Board of Supervisors A&M (includes LSU Board of Supervisors Supervisors • Baton Rouge Community College Supervisors & Law Center) • Southern University A&M • Grambling State University • Bossier Parish Community College • LSU Alexandria • Southern University Law • Louisiana Tech University • Central LA Technical Community • LSU Eunice Center • McNeese State University College • LSU Shreveport • Southern University New • Nicholls State University • Delgado Community College • LSU Health Sciences Center at Orleans • Northwestern State • L.E. Fletcher Technical Community New Orleans • Southern University University College • LSU Health Sciences Center at Shreveport • Southeastern Louisiana • LA Delta Community College Shreveport • Southern Agriculture Center University • LA Technical College • LSU Agriculture Center • University of Louisiana – • Nunez Community College • Pennington Biomedical Lafayette • Northshore Technical Community Research Center • University of Louisiana – College Monroe • River Parishes Community College • University of New Orleans • South LA Community College • SOWELA Technical Community College 2 Higher Education Changes in Funding since FY 10 Total Budget By Fiscal Year and Means of Finance $3,500,000,000 Change from FY 10 to FY 19 is -13.7%. $2.83B $2.96B $2.89B $3,000,000,000 $2.76B $2.72B $2.72B $2.58B $2.50B $2.44B $2.52B $2.45B $2,500,000,000 $2,000,000,000 $1,500,000,000 $1,000,000,000 $500,000,000 $0 FY 19 FY 10 Actual FY 11 Actual FY 12 Actual FY 13 Actual FY 14 Actual FY 15 Actual FY 16 Actual FY 17 Actual FY 18 Enacted FY 18 EOB Recommended SGF $1,153,446,852 $1,145,203,817 $938,374,962 $980,259,306 $535,257,074 $917,965,959 $648,933,316 $907,215,046 $1,004,440,577 $1,004,971,363 $732,716,972 IAT $590,880,211 $730,473,608 $409,714,712 $297,275,177 $71,412,498 $13,240,786 $15,715,927 $13,673,426 $23,555,601 $23,645,601 $23,223,489 FSGR $809,086,402 $801,002,423 $1,118,580,163 $1,145,792,798 $1,201,401,183 $1,226,718,796 $1,328,001,708 $1,384,356,305 $1,457,186,211 $1,457,186,211 $1,461,114,911 STAT. DED. $140,811,800 $140,559,000 $289,091,448 $189,463,892 $585,432,199 $196,750,337 $518,545,691 $150,958,134 $151,637,910 $151,642,910 $148,170,266 FED $138,773,073 $146,439,932 $129,379,721 $152,181,160 $109,694,738 $84,441,241 $65,851,091 $59,115,141 $79,903,497 $79,903,497 $80,105,297 3 Higher Education Changes in Funding since FY 10 Higher Education’s Budget as a Portion of the Total State Budget 40.0% 35.1% 35.1% Fees & Self-generated Revenues 34.7% 34.2% 35.0% 33.7% 33.5% 32.8% 33.0% 30.0% 28.4% 28.4% 25.0% 20.0% 15.0% State Funds (SGF/Dedicated Funds) 10.7% 11.0% 10.3% 10.0% 9.4% 9.0% 9.5% 10.0% 8.5% 8.4% 8.0% 10.3% 10.4% 9.4% 9.7% 8.7% 8.5% 9.2% Total Funding 8.2% 8.1% 7.0% 5.0% Federal Funding 1.3% 1.3% 1.6% 1.2% 1.2% 1.0% 0.7% 0.5% 0.6% 0.7% 0.0% FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 4 Higher Education Funding Actuals FY 05-FY 17, FY 18 EOB, FY 19 Recommended Nominal Unadjusted Actuals Excludes Hospitals & LOSFA Program STATE FUNDS $3,000,000,000 Change from FY 05 Actual to FY 19 Recommended = 18.2% Increase FSGR Total $2.5B $2,500,000,000 $2.4B $2.3B $2.3B $2.2B $2.2B $2.2B $2.2B $2.2B $2.2B $2.1B $2.1B $2.0B $2.1B $2.0B $2,000,000,000 Change from FY 05 Actual to FY 19 Recommended = 30.8% Decrease $1.5B $1.7B $1.5B $1.5B $1,500,000,000 $1.4B $1.4B $1.3B $1.2B $1.2B $1.2B $1.2B $1.1B $1.1B $1.0B $1.1B $1,000,000,000 $921M $865M $838M $872M $824M $803M $750M $829M $759M $1.1B $688M $639M $634M $647M $655M $500,000,000 Change from FY 05 Actual to FY 19 Recommended = 128.7% Increase $0 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 EOB Rec. 5 Higher Education Funding Actuals FY 05-FY 17, FY 18 EOB, FY 19 Recommended Actuals Adjusted for Inflation (HEPI) STATE FUNDS Excludes Hospitals & LOSFA Program FSGR $3,500,000,000 Change from FY 05 Actual to FY 19 Recommended = 14.0% Decrease Total $3.0B $3,000,000,000 $2.9B $2.8B $2.7B $2.6B $2.5B $2.6B $2.4B $2,500,000,000 $2.3B $2.3B $2.3B $2.3B $2.2B $2.2B $2.2B $2.0B $2,000,000,000 $1.9B Change from FY 05 Actual to FY 19 Recommended = 49.6% Decrease $1.8B $1.6B $1.5B $1.5B $1.5B $1,500,000,000 $1.4B $1.4B $1.3B $1.3B $1.3B $1.2B $1.2B $1.2B $1.0B $933M $904M $1,000,000,000 $878M $891M $861M $1.1B $885M $824M $828M $821M $793M $815M $829M $803M $500,000,000 Change from FY 05 Actual to FY 19 Recommended = 66.5% Increase Note: The Commonfund Higher Education Price Index (HEPI) was utilized to calculate. $0 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 EOB Rec. 6 Total Funding – All Means of Finance FY 17, FY 18, and FY 19 Comparison Total Funding — All Means of Finance FY 19 FY 18 EOB as of FY 19 Recommended Total Funding FY 17 Actual 12-1-2017 Recommended Over/(Under) FY 18 EOB Board of Regents $326,777,943 $448,434,971 $900,364,095 $451,929,124 LSU System $929,429,504 $954,934,949 $603,971,266 ($350,963,683) SU System $137,066,925 $138,709,287 $97,137,895 ($41,571,392) UL System $836,632,950 $872,304,199 $657,750,330 ($214,553,869) LCTCS $285,410,730 $302,966,176 $186,107,349 ($116,858,827) TOTAL $2,515,318,052 $2,717,349,582 $2,445,330,935 ($272,018,647) Total MOF FY 19 Net Adjustments to Higher Education TOPS SGF Cut ($233,342,683) Higher Ed SGF Cut ($25,680,922) Go Grant SGF Cut ($13,000,000) Regents CF BA-7 ($625,786) Various Dedicated Fund Reductions ($3,467,644) Board of Regents: Other MOF ($103,412) LUMCON: Additional FSGR Authority $4,000,000 Board of Regents: LOSFA Federal Authority $201,800 TOTAL ($272,018,647) 7 Higher Education FY 19 Executive Budget SGF Adjustments Higher FY 19 SGF SGF EOB 12-1- ROLL UP SGF to Net BoR Go Grant SGF TOPS SGF FY 19 SGF ADJUSTMENTS Education SGF Executive Budget 2017 Regents Adjustments Reduction Reduction Reduction Recommendation Board of Regents (BoR) $13,302,792 $991,668,571 ($230,786) ($13,000,000) ($233,342,683) ($25,680,922) $732,716,972 LOSFA Program (BoR) $266,431,249 ($266,431,249) $0 $0 $0 $0 $0 LUMCON Program (BoR) $2,277,892 ($2,277,892) $0 $0 $0 $0 $0 LCTCS $116,754,509 ($116,754,509) $0 $0 $0 $0 $0 LSU System $350,527,829 ($350,527,829) $0 $0 $0 $0 $0 SU System $41,490,381 ($41,490,381) $0 $0 $0 $0 $0 UL System $214,186,711 ($214,186,711) $0 $0 $0 $0 $0 TOTAL SGF $1,004,971,363 $0 ($230,786) ($13,000,000) ($233,342,683) ($25,680,922) $732,716,972 Since the FY 10 Budget Development process and pursuant to language contained in the Higher Education preamble of HB 1 (page 124, line 26 & 27 of HB 1 Re-engrossed & also page 127, line 21 & 22 of HB 1 Re-engrossed), for purposes of developing the Executive Budget Recommendation, the Division of Administration (DOA) transfers all SGF from the institutions and management boards to the Board of Regents, which results in all SGF budget adjustments to Higher Education being contained in the Board of Regents budget unit (19-671) in the FY 19 Executive Budget Recommendation. The Board of Regents does not spread the SGF to the institutions until the Higher Education Funding Formula is calculated, finalized and distribution decisions are made, which will likely not occur until June 2018. Prior to the FY 10 budget, the SGF was recommended in the management boards in the Executive Budget as well as in the appropriations bill. 8 Higher Education FY 19 Recommended Means of Finance FED Major Non-SGF Sources of Funding: STAT.

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